Grid Emission Factor – Key Progress in China's Climate Regulation

A list of technical data released by China’s environment ministry at the end of last year reveals the most significant progress in the country’s decarbonisation efforts in 2024 – the ongoing enhancement of a regulatory framework for carbon emissions measurement, with notably clearer guidelines leading to better data collection.

Throughout 2024, the Ministry of Ecology and Environment (MEE) had been publishing China’s grid emission data for previous years, including the national gross average emission factor. This metric measures the amount of carbon emissions per unit of electricity provided by an electricity system, and serves as a critical tool for emissions measurement, reporting, and verification (MRV).

On 26 December 2024, the MEE published the national gross average data for 2022, estimated at 0.5366 kgCO2/kWh and rising to 0.5856 kgCO2/kWh when market-traded green electricity is excluded from the count. The ministry also released the regional and provincial average grid emission factors for 2022. Yunnan and Sichuan provinces, renowned for their abundant hydropower resources, exhibited the lowest emission factors, at 0.1073 and 0.1404 kgCO2/kWh respectively. In contrast, the highest emission factors (above 0.7 kgCO2/kWh) could be observed in Hebei, Shanxi, and Tianjin – three northern Chinese regions whose energy production significantly depends on coal-fired power plants.

The latest release of data continues a process begun in April 2024, when the MEE published the grid emission factor for 2021. This signifies the ministry’s commitment to regular updates and is also an important step in resolving one of the major concerns that companies have had when complying with global emissions regulations to date. Regional and provincial emission factors are useful indicators to be considered when establishing businesses, particularly manufacturing facilities. Companies specialising in the export of products subject to European emission standards may choose to circumvent carbon-intensive power grids in northern China.

The next step for China’s emission factors will be to gain wider international recognition. Industry observations indicate that global databases often show a higher emission factor for China compared to those released by the Chinese government – something that may be negatively impacting global business prospects for Chinese companies.